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Demand for Computers

Explain how each of the following will affect the demand for computers: (i) a rise in incomes, (ii) an expected drop in the price of computers, (iii) a drop in the price of software, (iv) computers becoming simpler to operate, (v) a drop in the price of tablets. Explain any assumptions that you have to make to give your answer.

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(i) A rise in income would mean that consumers will have more money to buy for computers. This will definitely increase the demand for computers.

(ii) An expected drop in the price of computers will encourage buyers to buy more of it. This will result to an increase in the ...

Solution Summary

This is a brief discussion of what will happen to the demand for computers given five different scenarios.